Building a Platform for Regulatory Reporting with a Solid Data Management Foundation

Marc Rubenfeld, CIPM, Head of Eagle Solutions EMEA/APAC


Building a Platform for Regulatory ReportingThe regulatory environment and increasing compliance demands persistently rank among the top concerns for European financial services firms and, as the rules are always changing, these topics continue to be the subject of much discussion. At Buy-Side Technology’s recent European Summit, for example, both roundtables and panel debates focused on how firms can address this growing regulatory burden.

Since the global financial crisis began, we have seen a swath of regulation across the financial services industry. Legislation that has, or will soon, come into effect includes the Alternative Investment Fund Managers Directive (AIFMD), Solvency II, the Markets in Financial Instruments Directive (MiFID) II and Regulation (MiFIR), Undertakings for Collective Investment in Transferable Securities (UCITS) V and the European Market Infrastructure Regulation (EMIR). Although these regulations target different areas of the industry and tackle different issues, they are broadly designed to improve transparency, risk management and customer protection.

The exact impact of these rules on reporting is, in many cases, still being finessed and processes are still being established. However, given the common theme around transparency, firms don’t need to, nor should they, wait for these regulations to be finalized to take action. In general, firms need to have a detailed understanding of what their assets are and be able to classify those assets in a number of different ways. For example, liquidity requirements mean assets need to be tiered and derivatives isolated. This extends beyond the assets held to also encompass the transactions that have taken place. Effective data management is a crucial element for firms in gaining this understanding and insight.

Whether you’re a large global financial institution, insurance company, asset manager, or sovereign wealth fund, Eagle’s platform enables firms to bring all of their data together from different sources across the organization in one place while maintaining a granular level of detail. Here, it is validated and enriched and this same data set is then available for consumption across the entire enterprise and can be sliced and diced as needed.

The demand for more detailed reporting brings with it more intensive data requirements. There is a temptation, when addressing regulatory commitments, to treat each piece of regulation independently and silo reporting. By having data lined up and validated in a single location, firms have a flexible base that can be used as the source for their reporting commitments across different regulatory requirements. For example, Eagle is working with a number of clients to support their data requirements in preparation for Solvency II. If that firm is global, then they may also have to fulfill the requirements of the Dodd-Frank Act. Rather than having different systems working in parallel to validate, enrich and aggregate the data required for each piece of regulation, Eagle prepares all data on one platform, from which the relevant elements can be taken to feed each report.

Eagle’s data-centric approach to data management was designed first and foremost to help firms grow their assets efficiently by providing accurate and actionable information for better decision-making. This is something that overlaps with the objectives of the financial services regulators across Europe and beyond. As such, it offers firms a flexible foundation from which to achieve compliance and help meet the current and future reporting demands of regulatory authorities.

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